Implemented FDI in Vietnam Surges: A Boon Amidst Global Uncertainty

According to reports from the General Statistics Office, FDI implemented in Vietnam during this period is estimated to reach $6.28 billion, marking a substantial 7.4% increase compared to the same period last year.

This surge in FDI represents the highest amount realized in the first four months of the year over the past five years, signaling robust confidence in Vietnam's economic prospects.

The report indicates a positive trend in FDI inflows, with a total foreign investment capital registered in Vietnam reaching nearly $9.27 billion as of April 20, 2024, reflecting a 4.5% increase compared to the same period last year.

Among the registered investments, there were 966 newly licensed projects with a registered capital of $7.11 billion, showcasing a remarkable increase of 28.8% in the number of projects and an impressive 73.2% surge in registered capital compared to the previous year.

The processing and manufacturing industry emerged as the frontrunner in attracting FDI, with a significant portion of the newly registered capital amounting to nearly $5 billion, constituting 70.2% of the total newly registered capital. Real estate business activities followed closely, reaching $1.6 billion, comprising 22.5% of the total.

Singapore emerged as the leading investor among the 50 countries and territories, with a substantial investment of $2.59 billion, representing 36.4% of the total registered capital. Other prominent investors include the Hong Kong Special Administrative Region (China), Japan, China, Türkiye, and Taiwan.

In addition to newly licensed projects, there were 345 projects licensed from previous years that registered to adjust their investment capital by $1.23 billion, reflecting a 25.6% decrease compared to the same period last year.

The total registered foreign direct investment capital in the processing and manufacturing industry, including both new registrations and adjustments from previous years, reached $6.03 billion, accounting for 72.3% of the total newly registered and increased capital.

However, amidst the overall positive trend, there was a decline in the form of capital contribution and share purchase by foreign investors. The report indicates a significant decrease of 70.1% in capital contribution and share purchase activities, with a total capital contribution value of $929.6 million.

This decline can be attributed to various factors, including global economic uncertainties and regulatory changes.

Despite this decline, Vietnam's attractiveness as an investment destination remains robust, with the country witnessing a continuous increase in realized FDI capital. In the first four months of 2024, realized FDI capital in Vietnam surged to $6.28 billion, marking a notable 7.4% increase compared to the same period last year.

The processing and manufacturing industry once again emerged as the key beneficiary, attracting $4.93 billion, which accounts for a significant 78.5% of the total realized FDI capital. Real estate business activities and production and distribution of utilities also saw substantial investments during this period.

In contrast to the surge in implemented FDI, Vietnam's investment abroad experienced a decline in the first four months of 2024. The total Vietnamese investment capital abroad, including both new and adjusted capital, reached $98.9 million, marking a 35.6% decrease compared to the same period last year.

The mining sector received the highest investment, followed by wholesale and retail, construction activities, and real estate business activities.

Despite the challenges posed by the global economic landscape, Vietnam's resilient economy and favorable investment climate continue to attract significant FDI inflows. With sustained government efforts to improve infrastructure, streamline regulations, and enhance investor confidence, Vietnam remains poised for further economic growth and development in the coming years.